Khadi gets separate HS code, exports to get a boost

The government move, announced on Monday (4 November) will help Khadi come out of its customary textile products category and mark its presence in the export basket with an exclusive HS code. 

Khadi and Village Industries Commission (KVIC) chairman Vinai Kumar Saxena said the decision of government will open a new chapter for Khadi exports. Earlier, Khadi did not have its exclusive HS code. As a result, all the data regarding export of this signature fabric used to come as a normal fabric under the textile head. Now, we will be able to keep a constant eye not only on our export figures, but it will also help us in planning our export strategies.

The Harmonized System and it is a six digit identification code was developed by the World Customs Organisation (WSO) and custom officers use HS Code to clear every commodity that enters or crosses international borders.

Khadi and Village Industries products are eco-friendly and natural, and are in great demand in the International market. Recognising its potential to generate exports and its eco-friendly nature, the ministry of commerce accorded deemed export promotional council status (EPCS) to KVIC in 2006, to boost the export of Khadi products. However in the absence of separate HS code, export of Khadi products was difficult to categorise and estimate.